Bill To Permit Secondary
Capital Is Introduced
WASHINGTON-A bipartisan group of House members introduced legislation last week that would allow credit unions to raise alternative forms of capital, a long-sought goal for CUs. The Capital Acccess for Small Buinsses and Jobs Act would allow credit uions to issue alternative forms of capital that do not alter the cooperative nature of the credit union, are uninsured, and would be offered by a credit union that is determined by the board to be sufficiently capitalized and well-managed.
Three CUs Receive Grants
To Pilot New Programs
NEW HAVEN, Conn.-Three CU organizations have received funding from Innovations for Poverty Action under the anti-poverty group's U.S. Household Finance Initiative. IPA awarded $15,000 grants plus technical assistance to:
* Freedom FCU in Roanoke, Va., to test a line of credit and small dollar loan products which feature discounts for voluntary delayed loan disbursement
* Self-Help FCU in San Jose, Calif., to pilot test its "5 for Me" account, which will serve as a direct conduit between check cashing transactions and savings actions through a "commitment contract" for saving.
* Montana CUs for Community Development, to test the seamless conversion of loan payments to savings deposits upon the successful repayment of a loan. This "pay-yourself-back" feature will be applied to multiple products such as unsecured, auto, small-dollar and home equity loans
NCUA Cancels Open Portion
Of This Week's Meeting
ALEXANDRIA, Va.-NCUA has cancelled the open portion of its board meeting scheduled for Feb. 16. The closed portion of the meeting, which will deal with five individual supervisory matters, will go on as scheduled.
Refinancing Program Launched
ANTIGO, Wis.-CoVantage CU last week received a $1.5 million grant from the Community Development Financial Institutions Fund to help it finance a $10-million program aimed at refinancing mortgages for troubled homeowners.
The credit union said it will use the $1.5-million grant, along with $8.5 million approved by its board, to expand its Rescue Refinance Program, which provides financing to families and individuals who have been unable to keep up with their mortgage payment.
Yolo In Savings Challenge
WOODLAND, Calif.-Yolo FCU announced it will host a special challenge to help save the community $1 million in loan interest by June 30.
The challenge offers several special loan refinance programs to help consumers save money. If the goal is reached at the conclusion of the program, Yolo FCU will donate $5,000 to a local non-profit or cooperative, with the winning recipient determined by a public vote.
Yolo FCU will calculate the interest savings and post updates to its website, Facebook page and in branch offices on a monthly basis. To learn more about the $1 million community challenge, visit www.yolofcu.org.
KSFCU Turns Numbers Around
BAKERSFIELD, Calif.-Kern Schools FCU reported 2011 net income of $22.4-million, a $35-million improvement over 2010. KSFCU cited a $6 million reduction in operating expenses for driving a portion of that performance. Capital has increased to 7.73% from 4.31% as of June 2010.
SACU Displays 'Bandit Shield'
SAN ANTONIO-San Antonio CU is one of the first financial institutions to post an FBI-inspired warning to robbers-a burnt orange sticker on its front door that warns of its "Bandit Shield." The sticker shows that the credit union has taken part in a voluntary program to put state-of-the-art security measures in place and train employees to deal with all types of robbery situations.The initiative was created by the FBI, along with the San Antonio Police Department and the bank security industry.
Corrections & Clarifications
In the Jan. 23 edition of Credit Union Journal, a photo of Shannon Van Deusen was run in place of a photo of Shannon VanSickler. The correct photo of Ms. VanSickler is shown here.
CO-OP Closes On Purchase
RANCHO CUCAMONGA, Calif.--CO-OP Financial Services reported last week it had completed the acquisition of the assets of Corporate Network eCom, LLC, including its online and mobile bill pay services, and all employees. Corporate Network eCom was previously a subsidiary of U.S. Central FCU.
Corporates' Merger Complete
MIDDLETOWN, Penn.--Mid-Atlantic Corporate FCU and VACORP FCU have completed their merger, creating a $4.1-billion institution that serves 800 member CUs. Mid-Atlantic is the continuing charter.
RALEIGH, N.C. - State Employees' CU announced its SECU Foundation has partnered with the North Carolina Housing Finance Agency to finance residential group homes in Lee and Randolph counties. The Foundation provided 0% construction loans for each of the $500,000 projects, and the state housing agency will provide permanent financing after construction is completed.
NEW YORK - Bethex FCU is partnering with Lexington Vocational Services Center to offer free income tax preparation services to deaf individuals in the five boroughs of New York City. Bethex will provide two professional tax preparers, trained and certified by the IRS under the federal Volunteer Income Tax Assistance (VITA) program, at Lexington's Jackson Heights facility, to help deaf consumers complete their federal, state and local income tax filings. A sign language interpreter will be provided by Lexington to facilitate all tax consultations.
MOUNT AIRY, Md. - Kroll Bond Rating Agency, a new company billing itself as an alternative to traditional Wall Street rating agencies, has introduced a new methodology for rating credit unions. Kroll said the central feature of the new rating methodology is a revised statistical scoring system that was designed to improve the transparency of Kroll's ratings and enhance ratings accuracy. The new scoring system was developed following an analysis of CU failures over an 11-year period with a view towards identifying those characteristics most predictive of failure. The company said the new system generates a score for each CU that is then is converted into a rating, which is analyzed by Kroll and published on its subscription rating service.
LIVE OAK, Texas - Randolph-Brooks FCU is paying members more than $6.6 million in debit card. Members who used the MasterCard Freedom Check Card, its free debit card offering, to make purchases in 2011 will receive a rewards check. RBFCU is paying members 10 cents per debit card transaction, with a member loyalty bonus in the last quarter of the year. From October 2011 to December 2011, Freedom Check Card users earned 15 cents, instead of the usual 10, on each debit card swipe. Since the inception of the program, the credit union's Freedom Check Card program has given more than $20 million back to Randolph-Brooks members.
SCOTTSDALE, Ariz.-- CU Realty Services reported that during 2011 it awarded a total of $1.8 million in cost savings to credit union members who bought or sold their homes using the company's network of real estate agents. On average, these members saved $1,499, approximately 20% in real estate commissions.
RICHMOND, Va. - The president of St. Paul's Baptist Church FCU. Debora Morris, has been sentenced to five years in prison, with all but nine months suspended, for embezzling $40,000 from the tiny credit union. The $300,000 CU has been closed.
